User Account

All Pages

What is the nominal return associated with an investment

Assignment Help Microeconomics
Reference no: EM131634380

Question: Earning the nominal return: Suppose the inflation rate is 5%. Suppose the marginal product of capital in a firm is 8% but that in the course of production, 6% of capital is worn out by depreciation. What is the nominal return associated with an investment in capital, and why? What is the Fisher equation in this example?

Reference no: EM131634380

Questions Cloud

Squares must add to the total sums of squares : The between sums of squares and within sums of squares must add to the total sums of squares. Would this be true or false?
Discuss about the real and nominal interest rates : Real and nominal interest rates: Suppose the real return on investing in a machine is 5% and the inflation rate is 4%.
Are the solutions any different regardless of the situation : Some states face religious divisions that threaten national unity; some face ethnic, cultural, and socioeconomic tensions; and some face all these issues.
Asset income across individuals has a mean : In a simple random sample of 30 individuals, what is the probability that the total amount of asset income will exceed $18,000?
What is the nominal return associated with an investment : Earning the nominal return: Suppose the inflation rate is 5%. Suppose the marginal product of capital in a firm is 8% but that in the course of production.
Start each paragraph with the name of the song and artist : Write one paragraph per song on how it relates to any of the chapters or topics as presented during the course (political Science) remember this is for US.
Can the nominal interest rate be negative : Can interest rates be negative? Consider the following two questions.
The main area of interest regarding security tended : Until recently, for both academics and politicians the main area of interest regarding security tended to involve.
What is the writer saying about disabilities : What is your opinion about what the writer is saying about disabilities - What is the writer saying about disabilities?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is meant by weak stationarity

What is meant by weak stationarity and What is meant by an integrated time series?

  Discuss factors affecting index in economic freedom index

The 2014 Index of Economic Freedom tracks the level of economic freedom in 186 countries. Economic freedom means that individuals are free to work, produce, consume, and invest in any way they please

  C q2 50q 81 1determine the range of prices for which

c q2 50q 81 1determine the range of prices for which the firm incurs a loss but continues to produce. 2determine

  What is equilibrium quantity supplied and net price received

What is the equilibrium quantity supplied and net price received by producers after the government implements this excise tax on peanuts

  Construct cumulative risk profiles

Johnson Marketing is interested in producing and selling an innovative new food processor. The decision they face is the typical "make or buy".

  Legal regulations of conducting business overseas

Identifying the issues surrounding the motivation behind unethical or illegal business operations when the consequences are properly documented

  The money and banking system in the u.s

During a fast and furious brainstorm session, Jill scribbled down several key phrases she will use to study tomorrow.

  Why are market structures so important

What policies make sense to you with regard to the U.S. wheat or corn markets?

  Describe the business implications of an increase

Describe the business implications of an increase in the required reserve ratio from 4% to 7%. Explain how that would affect the business's strategic options.

  Main negotiator between your company and retailers

Briefly discuss the contractual clauses that you would offer retailers--and to which the retailers would agree--in order to accomplish your goals.

  Does the monopoly effect regulate the prices

Singer Taylor Swift has a monopoly over a scarce resource: herself. She is the only person who can produce a Taylor Swift concert.

  Fnd competitive equilbirum in economics

How can you find competitive equilbirum in economics?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd